Int'l Cooperation

Last updated: Wednesday, December 19, 2018

Vietnam, Indonesia Boosting Construction and Property Cooperation

Posted: Monday, June 04, 2018

The Embassy of Indonesia in Hanoi, with the support of the Vietnam Federation of Civil Engineering Association (VFCA), organised a business forum titled “Vietnam - Indonesia Cooperation on Construction and Property” on May 30, 2018 at Melia Hanoi Hotel.

In his speech, Indonesian Ambassador to Vietnam Ibnu Hadi said that the forum aims to enhance Indonesia - Vietnam cooperation in construction and real estate business to towards realising the goal of bringing the two-way trade value to US$10 billion by 2020.

In 2017, Indonesia and Vietnam saw a 16.36 per cent rise in bilateral trade value to US$6.50 million from US$5.58 million in 2016. Of the sum, Indonesian exports to Vietnam were worth US$3.63 billion, up 22.51 per cent year on year. Indonesia with a population of more than 260 million and Vietnam with 96 million are among the fastest growing economies in the world. In 2017, Indonesia and Vietnam recorded the GDP growth of 5.17 per cent and 6.81 per cent and had per capita GDP of US$3,859 and US$2,385 respectively.

Indonesia invested US$45.84 million in Vietnam in 2017, bringing its investment value to US$477.02 million with 69 projects, ranked 30th among countries and territories investing in Vietnam. Meanwhile, Vietnam invested US$51 million in eight projects in Indonesia, focusing on mining, communications and manufacturing industries. Remarkably, investment flows from Indonesia into Vietnam keep rising.

For Indonesia, construction growth is driven by infrastructure construction, expected to expand 5.9 per cent annually from 2017 to 2026, higher than the expected annual growth of 3.9 per cent of the construction sector. With the target urbanisation rate of 53 per cent, supported by the US$436-billion infrastructure improvement scheme advocated by President Joko Widodo, new road, railway, power plant and water system construction projects will be key to paving the way for residential, commercial and industrial development in urban and rural areas.